The assessee had not filed its return of income for Assessment Year 2008-09. Accordingly, reassessment proceedings u/s 147 were initiated. The AO’ had issued notice u/s 148 beyond the time limit of six years. The AO passed an assessment order disallowing the claim u/s 80P. On appeal, the CIT (Appeals) vide order dated 2 May 2019 annulled the assessment order. but gave direction u/s 150 to consider that the income has escaped assessment and take remedial action u/s 148 based on a Supreme Court decision. The Tribunal noted that in the present case, notice u/s 148 could have been issued only by the end of the Assessment Year 2015-16. The Tribunal held that the CIT(A) cannot confer jurisdiction upon the AO which it did not have. Thus, as the limitation period of six years had lapsed, notice u/s 148 could not be issued and thus reassessment proceedings u/s 147 cannot be initiated. (AY. 2008-09)
Allahabad Bank Karamchari Co-Operative Credit Society Ltd. v. ITO(2019)73 ITR 700 / 180 DTR 449/ 179 ITD 108 (Luck.)(Trib.)
S. 148: Reassessment- Notice- Order on appeal – If notice u/s 148 is beyond the time limit, the CIT(Appeals) cannot give direction u/s 150 to the AO to execute remedial action u/s 148 [ S. 147, .148 149(1) (b), 150 ]